How to Record CAS 415 Deferred Comp
Recognizing the cost of deferred compensation in the period it is earned by the employee to comply with Cost Accounting Standard 415.
| Account Name | Type | Debit ($) | Credit ($) |
|---|---|---|---|
| Deferred Compensation Expense | Expense | 15,000.00 | - |
| Accrued Deferred Compensation Liability | Liability | - | 15,000.00 |
💡 Accountant's Note
CAS 415 requires that deferred compensation be assigned to the period in which the obligation to pay is established, provided certain criteria for payment certainty are met.
Practitioner & Systems Framework
💻 ERP Architecture
Post these entries to a specific fringe benefit pool account to ensure correct allocation via the fringe rate to government contracts.
⚠️ Audit Flags
Discrepancies between CAS 415 accruals and IRS tax deductibility rules; lack of written deferred compensation plans.
📄 Required Documentation
Formal written compensation plan, individual employee agreements, and board of directors' approval of the plan.
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